Assume the Green Corporation is producing 25 units of output in a purely competitive market. The...
Assume the Green Corporation is producing 25 units of output in a purely competitive market. The firm’s marginal revenue is $15. Its total fixed costs are $100 and its average variable cost is $3 at 25 units of output. This corporation is realizing an economic profit of $?
Homework Answers
Average total fixed cost of the firm is $100 / 25 = $4. Average variable cost of the firm is $3. Average total cost = $7 ($4+$3).
Total economic profit = $15 - $7 = $8.
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Assume the Green Corporation is producing 25 units of output in
a purely competitive market. The...
Help with #6 and 7 please 6. Assume XYZ Corporation is producing 20 units of output....
Help with #6 and 7 please
6. Assume XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation: A. Should close down in the short run. B. Is maximizing its profits. C. Is realizing a loss of $60. D. Is realizing an economic profit of $40. 7. In...
A profit-maximizing firm in a competitive market is currently producing 100 units of output
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit?b. what is the marginal cost?c. what is its average variable cost?d. is the efficent scale of the firm more than, less than, or equal to 100 units?
Farmer Bean is selling green beans in a purely competitive market. His output is 600 units,...
Farmer Bean is selling green beans in a purely competitive market. His output is 600 units, of which each has a marginal revenue of $3. What is his average revenue?
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
a purely competitive firm finds that the market price for its product is $30 it has...
a purely competitive firm finds that the market price for its product is $30 it has a fixed cost of $100 and a variable cost of $15 per unit for the first 50 units and then $35 per unit for all successive units. what is the average variable cost for the first 100 units? what output level will yield the largest possible profit for this purely competitive firm?
24. In a competitive industry the market price of output is $24. A firm is producing...
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
stion 11 Suppose the a purely competitive firm is producing 100 units of output and that...
stion 11 Suppose the a purely competitive firm is producing 100 units of output and that P = $10 and MC = $8 at this level of output. Answer questions #17 - #19 using this information. wered nts out of 5 Flag #17) Is the firm maximizing profits? Explain your answer. Answer: No, profit is - $200 dollars to 12 Lot yet answered #18) Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate...
Assume that a purely competitive firm has the following schedule of average and marginal costs: Output...
Assume that a purely competitive firm has the following schedule of average and marginal costs: Output 1 AFC $300 150 100 No от во 60 50 43 38 33 30 AVC $100 75 70 73 80 90 103 119 138 160 ATC $400 225 170 148 140 140 146 156 171 190 MC $100 50 60 80 110 140 180 230 290 360 9 10 e. At a price of $55, the firm would produce units of output. At a...
If a perfectly competitive firm is producing at the P MC output and realizing an economic...
If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC ATC is being minimized total revenue equals total cost
HELP!! T-Shirt Enterprises is selling in a purely competitive market. Its output is 300 units, which...
HELP!! T-Shirt Enterprises is selling in a purely competitive market. Its output is 300 units, which sell for $10 each. At this level of output, marginal cost is $1 and average variable cost is $1.50. The firm should: a. continue to produce 300 units. b. increase output. c. produce zero units of output. d. decrease output.
Help with #6 and 7 please
6. Assume XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation: A. Should close down in the short run. B. Is maximizing its profits. C. Is realizing a loss of $60. D. Is realizing an economic profit of $40. 7. In...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
stion 11 Suppose the a purely competitive firm is producing 100 units of output and that P = $10 and MC = $8 at this level of output. Answer questions #17 - #19 using this information. wered nts out of 5 Flag #17) Is the firm maximizing profits? Explain your answer. Answer: No, profit is - $200 dollars to 12 Lot yet answered #18) Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate...
Assume that a purely competitive firm has the following schedule of average and marginal costs: Output 1 AFC $300 150 100 No от во 60 50 43 38 33 30 AVC $100 75 70 73 80 90 103 119 138 160 ATC $400 225 170 148 140 140 146 156 171 190 MC $100 50 60 80 110 140 180 230 290 360 9 10 e. At a price of $55, the firm would produce units of output. At a...
If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC ATC is being minimized total revenue equals total cost
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